CONVENTIONAL LOANS

CONVENTIONAL HOME LOANS

Less Paperwork and Faster Closing Times

  • Best Rates and Terms
  • No PMI Insurance
  • 21 Day Close!
  • Down Payment Starting at 5%

APPLY NOW!

What Is A Conventional Home Loan?

Definition of a conventional loan:

Conventional Mortgage Loans can be defined as a government-backed loan or a conventional home loan. Government agencies like the FHA (Federal Housing Administration) as well as the Department of Veterans Affairs (VA Loans) insure private lenders against potential defaults.  The mortgage home loan insurance is paid for through fees that they collect from the borrowers. 

The USDA (United States Department of Agriculture) home loans lends money to lower-income borrowers through their Direct Housing Program.  The USDA also guarantees home loans made by private lenders through a different program called the Guaranteed Housing Loans program. In each case the borrowers are responsible for fees that cover the insurance.

APPLY NOW!



Key Benefits Of A Conventional Loan

Some of the main advantages of a conventional loan vs a Government loan like an FHA, VA or USDA loan is that mortgage insurance or what is known as Private Mortgage Insurance  (PMI) is cheaper. A conventional loan does not require private mortgage insurance if you put down at least 20%. 

Pros And Cons of A Conventional Home Loan

The Pros of A Conventional Home Loan

* Loan amounts of up to $726,200 on the average.  More in higher cost areas.

* No up front Private Mortgage Insurance (PMI)

* Mortgage insurance is automatically cancelled after the loan to value drops down to 78% or below.

* Low Down Payments – Down to 5%

* Most single family residencies qualify

The Cons of A Conventional Home Loan

* More difficult to qualify for a commercial loan than an FHA loan

* Slightly higher rates than an FHA loan

* Down Payment is higher than an FHA loan

* Higher credit score requirement (620-640 typical)

-* No up front Private Mortgage Insurance (PMI)

For more information Call 800-826-5077

Standard Conventional Home Loan Requirements

-* A Downpayment of 5% on up with a typical down payment of 20%.
-* A Credit score of 620 plus
-* Verification of income
-* Verification of employment
-* 2 years of continuous employment history

A conventional loan is not for everyone. Some of us don’t have the credit score to support a conventional loan and others including luxury clients may not feel comfortable sharing their tax returns. In these cases CambridgeHomeLoan.com has dozens of other loan products to fit everyones individual needs. some of these products include FHA Home Loans, VA Home Loans, USDA Loans, Jumbo Loans, Super Jumbo Loans, Statement Only Home Loans, Asset Only Loans and more. contact 800-826-5077 to discuss your situation.

Frequently Asked Questions

Most frequent questions and answers

A credit score that is at least 620, is what you should shoot for here as a minimum. Your objective should be 740. With a credit score of 740+ the best rates and deals will be available to you.  If you pull your credit and your score is below 740, take the time to improve it if you can. The time will definitely pay for itself in the form of lower interest rates.

If you are looking for a conventional loan, you may need to include a guarantor if you do not have a long credit history. The guarantor is a third party who signs onto the loan and guarantees to pay if you default. A guarantor can also lower your risk profile and get you a better interest rate: They are often used as a strategy as well as a fulfillment.

Fees for inspections and appraisals will need to be escrowed. Even though you can most likely roll these costs into the loan they will need to be escrowed up front. You will also most likely pay for the appraisal approximately $400-$650 depending on the market for a single family.

Government loans have many benefits upfront, Lower down payment requirements and not so strict on the credit requirements are certainly appealing. However, if you meet the criteria for a conventional home loan, you pay tens of thousands of dollars if not hundreds of thousands over the term of the loan.
smart choices

Discuss Loan Options

I would like to discuss my loan options

simplicity

Quick Apply

I would like to apply for my loan myself

apply home loan

Pre-Qualify

I am shopping for a home and would like to pre-qualify for my price range.

Refinance and Mortgage Home Loan Expert Advice

flipping investment homes

Flipping Houses In 2023

Finding The Best Houses in the Best Areas Flipping Houses in 2023: Finding the Best Properties in the Right Area ‍ The real estate flipping

Read More »

Short Form Application

Finding you the best mortgage rates and terms to fit your loan starts here.

Someone from CambridgeHomeLoan.com will be contacting you shortly. CambridgeHomeLoan.com will be with you every step of the way to help you with your financing needs. If you have any questions feel free to call 800-826-5077. Home Loans made easy!

INVESTMENT LOAN PRODUCTS

dscr loan program

DSCR LOAN

Taking the first step on the real estate road to passive income and wealth? A rental property loan at a great rate can give you the momentum you need to grow your real estate (Buy, Repair, Rent, Refinance, Repeat (BRRRR) business.

fix and flip loan programs

FIX TO FLIP

Looking for a fix to flip or fix to rent bridge loan. Up to 90% of the purchase and 100% of the rehab. Closing as fast as 5 days!
Fix to Flip or Fix to Refi . 30 or 40year DSCR loan Build your passive income stream.

rental loan

CASH OUT REFI

Looking to scale your real estate investment portfolio. Cash-out & refinance into a 30 or 40 year loan.. Closing 30 days!
Use your additional capital as a down payment to your next rehab project.

construction loan

CONSTRUCTION

Looking for a ground up construction loan. Are you a builder or investor building a spec house or a P.U.D.
Discuss your ground up scenario with us today and take advantage of the housing shortage.